The Telecom Regulatory Authority of India (TRAI) addressed and dismissed news reports on Saturday claiming an extensive investigation into past tariff plans for predatory pricing. TRAI clarified that there is no special drive to probe all historical tariff plans filed by telecom companies except for specific plans currently under examination.
The regulatory body’s denial comes in response to media reports suggesting that TRAI was scrutinizing all past tariff plans against service providers for predatory pricing, particularly in relation to unlimited 5G data offerings. TRAI’s clarification aims to dispel any confusion and set the record straight regarding its ongoing activities.
TRAI has emphasized the significance of draft regulations on metering and billing, aiming to ease the burden on service providers by reducing the frequency of audits conducted annually. Under the new proposal, instead of quarterly audits for each licensed service area (LSA), TRAI suggests a switch to an annual audit, resulting in a remarkable 75 percent reduction in effort. This strategic adjustment is anticipated to enhance the efficiency of the auditing process and maximize resource utilization.
TRAI emphasized the importance of the centralized audit system, prioritizing it overreaching each LSA and duplicating audits for individual plans. Going forward, LSAs will only undergo audits for plans not subject to the centralized audit. TRAI also emphasized that no financial disincentives will be imposed if service providers take timely corrective actions.
The regulatory body further acknowledged the limitations of the current audit methodology, which fails to represent all segments of prepaid customers—a group that constitutes almost 95 percent of the total customer base. To address this, TRAI has rationalized the plan selection process to ensure proper representation of all types of plans. This move aims to achieve a fair and comprehensive assessment of cross-border tariff plans.
TRAI clarified that any tariff might be subject to fresh examination based on the statutory mandate of the Authority. This includes instances where stakeholders, including Telecom Service Providers (TSPs), raise complaints of non-compliance with regulatory principles or allegations of predatory pricing.
The clarification by TRAI brings clarity and reassurance to telecom companies and consumers alike, alleviating concerns about an extensive probe into past tariff plans for predatory pricing. With a focus on centralizing the audit system and reducing the burden on service providers, TRAI aims to strike a balance between effective regulation and industry efficiency.
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